Thousands of crypto accounts drained

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When cryptocurrency first appeared, few thought it was of any value. Today, it is an integral part of the investment strategies of many peoples. Cryptos like Bitcoin and Etherum have continued to skyrocket in value. Tap or click here for 12 questions you’re too embarrassed to ask about Bitcoin.

However, trading and investing in crypto is quite complicated and you need digital wallets and exchanges to manage the currency. Exchanges like Coinbase were prevalent because their security was high and the platform was user-friendly.

Unfortunately, Coinbase recently joined the millions of platforms that have been hacked. Read on to find out how thousands of crypto accounts were drained in the Coinbase hack and what will happen to your money now.

Here is the backstory

Crypto remained a questionable investment for many years, and then PayPal jumped on the bandwagon. Since then, crypto has become widespread, being taken over by investment platforms like Robinhood, making it easier than ever to invest.

RELATED: Want to Buy Cryptocurrency? What you should know first

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This mainstream movement has given crypto a banner year, with more people than ever trying it. Unless you are using a platform like Robinhood or PayPal, which is quite simpler, those looking to get into the world of crypto need a few things first.

Exchanges and wallets

When buying crypto, you will be exchanging money for a digital option, like Bitcoin. You need to use an exchange like Coinbase to make the transaction easier. Any online transaction comes with risk, so we rely on exchanges like Coinbase to have top-notch security to keep them safe.

After purchasing your cryptocurrency through an exchange, you will need to store it in a digital wallet. There are several options, all with different levels of security. Unfortunately, no wallet or exchange is safe from hackers, as we saw with the recent attack on Coinbase.

RELATED: Cryptocurrency 101: 5 Tips for Buying Crypto Safely

The Coinbase violation

Over the past few days, Coinbase has contacted over 6,000 users who have some, if not all, of their crypto funds completely emptied by hackers. How did it happen?

While Coinbase was able to identify that the attack occurred through a flaw in its 2FA system, it is not entirely sure how it happened. He knows that the hackers would need vital information to complete the attack, such as login credentials and passwords.

His best guess is that the information was obtained through comprehensive phishing schemes from users over the months. Evidence indicates that this is partly to blame after an email was sent to Coinbase users in September asking them to change their 2FA settings. An email that Coinbase quickly denounced.

Have I been affected and will I get my money back?

If you’ve received an email from Coinbase regarding the hack, it’s possible that your account has been affected and you should immediately recheck all of your transactions.

If your account has been affected, you should immediately notify Coinbase to temporarily lock your account and contact their support team for further instructions. You can do this by clicking here.

If you haven’t received an email, it doesn’t hurt to log into your account to verify that all of your crypto is there and nothing suspicious has happened.

Find something suspicious? Do not panic. Coinbase has already agreed to replace the security breach’s stolen crypto by depositing equal coins into user accounts.

Crypto is like everything else

The overall lesson here is that nothing is safe online. With technology, ever-evolving cybercriminals are looking for ways to steal your personal information and money.

However, that doesn’t mean that crypto isn’t worth investing in. If you’re nervous but still curious about investing in cryptocurrency, Kim has you covered. From wallets to exchanges to which coin may be the safest option, learn all about it in Kims eBook, Cryptocurrency 101.

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